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Gas price surge hits lower-income Americans the hardest, research shows

The Independent·Christopher Rugaber·26 days ago
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Spiking gas prices in the month following the Iran war disproportionately impacted lower-income Americans , forcing them to spend more at the pump despite sharply reducing their consumption, new research has revealed. This trend has exacerbated existing economic disparities across the nation. In stark contrast, higher-income households increased their spending on fuel while barely curbing their usage, according to a report from the Federal Reserve Bank of New York. Middle-income households, meanwhile, exhibited behavior falling between these two extremes. The report highlighted that the divergence in reactions between income groups was more pronounced than during a similar gas-price shock in 2022, which occurred after Russia's invasion of Ukraine . Four years ago, higher-income households cut back more significantly on their gas consumption, while poorer households likely benefited more from government stimulus programs at the time.…

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